The U.S. Securities and Exchange Commission (SEC) has acknowledged receipt of a 21Shares Core Ethereum ETF staking proposal, marking a potential milestone for Ethereum-based investment products in the U.S.

First Ethereum ETF Staking Proposal in the U.S.

On February 20, 2025, the SEC formally accepted a 19b-4 filing from Cboe BZX Exchange on behalf of 21Shares, seeking approval for an Ethereum ETF with staking features.

If approved, this would be the first ETF in the U.S. to allow ETH staking, enabling investors to earn additional returns on their holdings. The filing states:

• All staked ETH will remain under the trust’s ownership
• No third-party staking-as-a-service providers will be involved
• Direct staking could provide additional income for investors

This approach could differentiate 21Shares’ ETF from other staking models that have faced regulatory resistance.

SEC’s Changing Stance on C

Crypto Staking

Historically, the SEC has been strict on staking-related activities, labeling them as securities under former Chair Gary Gensler. This led to Ethereum ETF issuers removing staking options from their filings.

However, under the Trump administration, the SEC has:

• Created a dedicated crypto task force

• Re-evaluated the classification of some crypto assets
• Adopted a more favorable stance toward blockchain innovation

Analysts believe that a clear regulatory framework for staking could encourage wider adoption, particularly among institutional investors seeking yield-generating opportunities.

Institutional Demand for Ethereum ETFs Rising

Institutional interest in Ethereum-based investment products has surged:

• ETH ETF ownership increased from 4.8% to 14.5% in Q4 2024
• Bitcoin ETF ownership declined slightly from 22.3% to 21.5%

If staking is approved, it could further boost institutional demand and potentially impact Ethereum’s market price.

Broader Implications for Crypto ETFs

The SEC’s acknowledgment of 21Shares’ proposal follows its recent review of Bitwise, Grayscale, and 21Shares XRP ETF applications, sparking speculation that crypto ETFs are gaining wider acceptance.